The taxation of trades in assets

Alessandro Citanna (1) , Heracles M. Polemarchakis , M. Tirelli

1 GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC

When the asset market is incomplete, there typically exist taxes on trades in assets that are Pareto improving. This fiscal policy is anonymous, it is fully and correctly anticipated by traders, and it results in ex post Pareto optimal allocations; as such, it improves over previously proposed constrained interventions

Mots clés: Taxes; Pareto improvement; Incomplete asset markets; Competitive equilibrium

Domaines: Gestion et management

Alessandro Citanna, Heracles M. Polemarchakis, M. Tirelli. The taxation of trades in assets. Journal of Economic Theory, 2006, 126 (1), pp.299-313. ⟨10.1016/j.jet.2004.11.003⟩. ⟨halshs-00009847⟩